A database, known as National Student Loan Data System (NSLDS) is maintained by Federal Government. The information from NSLDS can be had only by using social security number of the borrower.

Receiving the application for federal consolidation loan, student loans consolidation services access borrower’s personal information from NSLDS. U.S. Department of Education has implemented several strict regulations to access NSLDS. Penalties for violating rules and regulation to use NSLDS are also very severe. Federal consolidation lenders remain careful about the secrecy of borrower’s personal information.